Why Microsoft is doing the smart thing with the Surface

What exactly is Microsoft trying to do with the Microsoft Surface line of …

With Gates' recent demonstration of the TouchWall, Microsoft blogger Mary Jo Foley voiced her thoughts with a blog entry entitled "Does Microsoft really need to diversify into consumer products?" which looked at the broader picture of Microsoft continuously moving into new markets. While I agree that the company is doing too much in too many areas (and therefore many of the company's endeavors are terrible failures), the whole Microsoft Surface idea makes perfect sense.

Microsoft often enters a market only when it is very saturated: take the Zune, the search and advertising space, or even the gaming console market. The company is only doing not too badly in the latter, and even then, the Xbox 360 is the company's second attempt (the original Xbox failed to turn a profit). Furthermore, looking at the bigger picture of the non-Windows gaming market, Microsoft is still very behind its competitors when looking at the bigger picture (think Sony and Nintendo sales). Things should be very different with Surface.

With the Microsoft Surface and the TouchWall, the software giant is thinking well into the future (too far, some would argue). Microsoft is preparing for the day when the keyboard and mouse aren't the primary input devices. Touch, motion, and voice are all slowly creeping into the tech world, and Microsoft wants to be on top of it all when the change becomes permanent.

Don't get me wrong: the desktop and laptop will be here for years to come, but the definition of "computer" is broadening. Remember that Microsoft Surface isn't something that is years and years away, it's slowly becoming availablenow. This is not a market that Microsoft is entering late into the game, but a market that Microsoft is building. To do that, the hardware and the software both need to be addressed.

Sure, touchscreen computers have been around for years, but Microsoft is going beyond just a touchscreen. As a software company, Microsoft is putting an immense amount of work into interactive operating systems for these computers—interactive in terms of user interface and in terms of communicating with other devices. So far, there are three form factors that we know of, but more are likely on the way: vertical plane, horizontal plane, and sphere.

This "plan" will only work if these computers do indeed take off, and Microsoft is the one that companies want to buy from. Once prices begin to fall and these computers really do become mainstream at home and work, Microsoft has the option to sell just the software. OEMs may end up wanting to create their own hardware, and since customers will want the software and developers have already coded their applications for it, Microsoft will have the option of simply doing what it does with Windows. It all comes down to one thing: Microsoft is trying to create yet another platform.